US Economy Grows

Americans have a reason to cheer..US economy grew in the third quarter as strong consumer and business spending offset efforts by businesses to reduce an inventory glut, underscoring its resilience despite a raft of challenges. Gross domestic product grew at a 2 per cent annual pace, instead of the 2.1 per cent rate reported last month, the commerce department said on Tuesday. The GDP data backs up the Fed’s decision to lift-off this month and paves the way for more rate hikes early in 2016,” said Chris Rupkey, chief economist at MUFG Union Bank in New York. While other data on Tuesday showed a surprise 10.5 per cent plunge in home resales last month, economists cautioned against reading too much into the drop, noting that new mortgage disclosure rules had caused delays in closing contracts. The National Association of Realtors said existing home sales tumbled to an annual rate of 4.76 million units, the lowest level since April 2014. The drop is in stark contrast to robust housing starts, new home sales and bullish homebuilder sentiment.